Ofgem Pledges To 'Simplify Energy Market'

Ofgem has published plans that it says will create a "simpler, clearer and fairer" energy market.

The regulator outlined a range of measures including scrapping confusing tariffs and forcing suppliers to tell consumers the cheapest deal available.

It comes after the Prime Minister took the sector by surprise when he vowed to introduce laws to make energy suppliers give customers the best value tariffs - rather than simply inform consumers what is available, as unveiled by Ofgem.

Energy Minister John Hayes later insisted the Government was only considering introducing such a law.

Ofgem also extended proposals unveiled last year to simplify tariff structures and limit the numbers of different tariffs offered across the whole market.

It proposed that suppliers offer four core tariffs per fuel type - electricity and gas - cutting out the "baffling" array of deals currently on offer.

So-called "dead" tariffs that are no longer available will be banned to reduce the risk of people paying too much, Ofgem said.

It also wants to stop price increases or other changes to fixed-term tariffs, and introduce new ways of helping consumers switch energy accounts.

The watchdog's chief executive, Alistair Buchanan, said the proposals followed input from thousands of consumers.

"Our plans will put an end to consumers being confused by complex tariffs and will usher in a simpler, clearer, fairer and more competitive energy market for all consumers," he said.

"I am glad to say suppliers have already responded with some initiatives, but these don't go far enough. 

"Ofgem is determined to press forward with proposals to deliver for consumers the most far-reaching shakeup of the retail energy market since competition was introduced."

The executive director of consumer group Which?, Richard Lloyd, broadly welcomed the proposals.

"Along with the Prime Minister's promise to ensure suppliers put their customers on their lowest tariffs, this is another big step towards helping people get the best price for their energy," he said.

"Our own research shows the market is far too complicated, with only one in 10 people able to find the cheapest deal.

"These proposals will boost customer power, making it much easier to shop around, and should increase the pressure on the energy companies to keep their prices in check."

The Energy Secretary Ed Davey said he had been pushing for the measures for some time.

"They represent a big step forwards in reforming our energy market to help millions of households get a better deal on their energy bills," he said.

""I want an energy market where the suppliers have to work hard to win your business, and then work hard to keep it."

But the shadow energy and climate change secretary, Caroline Flint, argued that Ofgem's proposals were "only tinkering at the margins".

"It is deeply disappointing that after spending nearly two years putting these proposals together Ofgem has once again ducked the opportunity to get tough with the energy giants," she said.

"We need to open up the books of the energy companies, but these reforms do nothing to improve the transparency of the prices these firms charge their customers."

Ofgem is legally required to go through an extensive consultation process but wants to start to introduce its reforms by summer 2013.

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EU Agrees On Bank Supervisor After Compromise

European leaders have agreed to create a supervisor for all eurozone banks in 2013, after a disagreement between France and Germany threatened to derail the deal.

By the end of a two-day summit of European leaders in Brussels, a 120bn euro (£97.5bn) package of measures to boost growth had also been unveiled.

It included using proceeds from a proposed tax on financial transactions to tackle youth unemployment - currently running at 50%.

After 11-hours of negotiations over a bank supervision deal, a European Commission (EC) spokesperson said there had been an "agreement on a political framework for the end of 2012 and a gradual implementation in 2013."

The deal represents a compromise between Germany and France, which disagree on how best to support the region's banking system.

France wanted the watchdog to be up and running for all 6,000 banks in the 17 euro countries by January next year, while Germany thought implementation should be slower, involving only the biggest bank groups at first.

Chancellor Angela Merkel called the timetable "very ambitious," adding that Europe needed "quality before speed", and a watchdog "worthy of the name".

But France's President Francois Hollande said it was "a good deal".

The agreement includes something for both countries: all 6,000 banks will be included, but there is no firm deadline for the single supervisor to be up and running.

It is crucial to the eurozone's future as leaders agreed in June that, once the body is in place, failing banks will be able to tap its new debt rescue fund.

The European Stability Mechanism (ESM) will help failing banks directly, meaning they do not have to place more strain on Governments' finances.

But not all European countries are convinced the supervisor is a good thing.

Those that belong to the EU but do not use the euro – such as the UK - are nervous that the new system would see investors flock to eurozone banks because they look safe.

Some are also concerned that the eurozone countries will vote as a group on regulations that affect all EU members.

At the end of the summit, David Cameron warned he would veto the EU's 2014-20 budget if it included increases in spending at a time when member state budgets are being cut.

The Prime Minister said: "We can't have EU spending going up and up.

"It would not be acceptable to see a huge increase in spending when budgets are being cut."

The 27 members of the EU meet next month to agree on 2014-20's 1trn euro (£0.8trn) budget proposed by the EC.

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Google Beats Rivals With Low Price Laptop

Google is launching its new low-priced Chromebook laptop as rivals Microsoft and Apple prepare to release their latest gadgets.

The lightweight computer will sell in the UK for around £200 and $249 in the US. It will go on sale early next week.

It is being made in a partnership with Samsung, which also makes smartphones and tablet computers that run on Google's Android software.

The laptop, which does not have a hard drive, will run on an operating system revolving around Google's Chrome Web browser.

It functions like a terminal dependent on an Internet connection to get to information and applications stored in large data centres run by Google or other technology providers.

It is the least expensive Chromebook that Google has released in the two years that it has been working on the product line.

Google and Samsung released a slightly more sophisticated Chromebook priced at $449 (£280) in the late spring.

Now it appears to be trying to get ahead of its rivals.

Microsoft is poised to release Windows 8, a dramatic makeover of its famous operating system, on October 26.

And Apple says it plans to show off a new product Tuesday. The event is widely expected to be the coming-out party for a slightly smaller version of its iPad.

"This is a big step in the journey for us," said Sundar Pichai, Google's senior vice president of Chrome and apps. "I think it's generally an exciting time in the computing industry."

Despite the low price, the new Chromebook will face a tough time winning over consumers because it is notset up like a traditional PC with a hard drive, said Gartner analyst Carolina Milanesi.

"A lot of people are going to see it and think, 'Once I have it, what exactly do I do with it?'" Milanesi predicted.

Like tablets, the discount Chromebook will rely on a computer chip design known as ARM, instead of Intel microprocessors. The ARM architecture is more energy efficient, extending the duration of batteries between charges.

With an 11.6in (29.46cm) screen, the new Chromebooks also will have a larger display than tablets selling in the same price range.

The laptops will be set up to automatically use all of Google's services, including its search engine, Gmail and YouTube video site.

Google also is offering 100 gigabytes of free storage on computers kept in its eight data centres.

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PPI Scandal: Barclays Sets Aside Another £700m

Barclays Bank has set aside another £700m to cover its costs after a surge of customer complaints over the payment protection insurance (PPI) mis-selling scandal.

The move takes the bank's total estimated bill to £2bn.

It released a statement on Thursday afternoon which read: " Barclays has experienced higher than previously anticipated PPI claim volumes since the end of the first half, and has therefore determined that it is appropriate to provide a further £700m as at 30 September 2012.

"This is in addition to provisions recognised of £1bn in 2011 and £300m in the first quarter of 2012. Based on claims experience to date and anticipated future volumes, the resulting provision includes Barclays best estimate of expected costs of future PPI redress.

"Barclays will continue to monitor actual claims volumes and the assumptions underlying the calculation of its PPI provision."

The mis-selling of PPI, which was designed to cover payments in the event of ill health or redundancy, is set to cost the British financial services industry more than £10bn.

According to the Financial Ombudsman Service, Barclays received the most PPI complaints over the first six months of 2012, totalling 19,522.

Lloyds TSB followed next with 9,493.

The ombudsman has warned that PPI complaints are on course to more than double the 165,000 that it had anticipated this year though claims management companies - and some consumers alike - have been accused of cashing in on the scandal and inundating banks with questionable claims.

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Ofgem Pledges To 'Simplify Energy Market'

Ofgem has published plans that it says will create a "simpler, clearer and fairer" energy market.

The regulator outlined a range of measures including scrapping confusing tariffs and forcing suppliers to tell consumers the cheapest deal available. 

It comes after the Prime Minister took the sector by surprise when he vowed to introduce laws to make energy suppliers give customers the best value tariffs - rather than simply inform consumers what is available, as unveiled by Ofgem.

But Energy Minister John Hayes later insisted the Government was only considering introducing such a law.

Ofgem also extended proposals unveiled last year to simplify tariff structures and limit the numbers of different tariffs offered across the whole market.

It proposed that suppliers offer four core tariffs per fuel type - electricity and gas - cutting out the "baffling" array of deals currently on the market.

So-called "dead" tariffs that are no longer available will be banned to reduce the risk of people paying too much, Ofgem said.

It also wants to stop price increases or other changes to fixed-term tariffs, and introduce new ways of helping consumers switch energy accounts.

The watchdog's chief executive, Alistair Buchanan, said the proposals followed input from thousands of consumers.

"Our plans will put an end to consumers being confused by complex tariffs and will usher in a simpler, clearer, fairer and more competitive energy market for all consumers," he said.

"I am glad to say suppliers have already responded with some initiatives, but these don't go far enough. 

"Ofgem is determined to press forward with proposals to deliver for consumers the most far-reaching shakeup of the retail energy market since competition was introduced."

The regulator is legally required to go through an extensive consultation process but wants to start to introduce its reforms by summer 2013.

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Google's Market Value Plunges After Blunder

Google saw nearly $20bn wiped off its market value after third quarter earning figures were released prematurely by its financial printer.

The internet search and advertising giant, which recently overtook Microsoft Corp to become the second-largest US technology company, reported a 20% drop in net income to $2.18bn (£1.36bn) between July and September.

But the announcement, which was expected after the market close, was released early after financial printer RR Donnelley filed a draft of its earnings statement without authorisation on Thursday morning.

That resulted in $19.8bn (£12.33bn) being wiped off its value by the market close and trading being halted on the Nasdaq after losses prompted the share price to plummet by up to 10% at some stages.

Google also reported net revenue - excluding traffic acquisition costs - of $11.3bn (£7.04bn) for the third quarter of 2012, below Wall Street expectations of around $11.9bn (£7.41bn).

It has been struggling to turn around loss-making Motorola Mobility it bought for $12.5bn (£7.78bn).

A spokesman said: "Earlier today RR Donnelley, the financial printer, informed us that they had filed our draft 8K earnings statement without authorisation. 

"We have ceased trading on Nasdaq while we work to finalise the document. 

"Once it's finalised, we will release our earnings, resume trading on Nasdaq and hold our earnings call as normal at 1:30 Pacific Time."

The second paragraph of the press release said "pending Larry quote", suggesting the space was reserved for comment from chief executive Larry Page.

BCG analyst Colin Gillis said: "Click prices declined for the fourth consecutive quarter after rising for eight consecutive quarters before then.

"The other bit is the Motorola millstone had been ignored by the market and - boom - now you've got weak revenue from Motorola."

Microsoft Corp also revealed its quarterly profit fell by a more than expected 22%, as sales of computers running Windows operating systems dipped.

Shares in the company fell by more than 2% in after-hours trading, with sales of PCs expected to fall this year for the first time since 2001 up against strong competition from Apple's iPad.

Microsoft is betting on the release of touch-friendly Windows 8 to boost flagging sales when it launches next week.

It said first quarter profits fell to $4.47bn (£2.79bn) and sales fell 8% to $16.01bn (£9.98bn).

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Apple iPad v Samsung Galaxy Copyright Appeal

By Katie Stallard, Media and Technology Corrrespondent

Apple and Samsung will return to the Court of Appeal in London today in the latest round of their global patent wars.

The two tech titans are currently embroiled in a series of lawsuits around the world as they continue to do battle over copyright, with billions of dollars at stake.

The latest case focuses on their tablet computers and Apple's claim that Samsung's Galaxy tablet copied its design for the iPad.

Apple lost the first round at the High Court in July, when the judge ruled that the Galaxy was not as "cool" as the iPad and that it gave a different overall impression, so did not infringe its copyright.

Apple will now find out if it has been successful in its appeal against the ruling.

Simon Clark, head of intellectual property at international law firm Berwin Leighton Paisner, told Sky News: "Given the huge popularity of the iPad, it was not surprising that Apple chose to appeal the decision.

"However, the judgment was given by a highly experienced and well-respected specialist intellectual property judge, and Apple will have an uphill battle to persuade the Court of Appeal to overturn his ruling.

"The Court of Appeal is always reluctant to interfere with a judge's decision on similarity comparisons, which are inevitably subjective, even if they consider that another judge may have had a different opinion."

The legal test for whether a product infringes another's registered design is whether it produces the same "overall impression on the informed user".

Judge Colin Birss ruled in July that whilst the view from the front was "very, very similar", there were significant differences in both the thinness of the tablets and the detailing on the back.

Judge Birss concluded: "The informed user's overall impression of each of the Samsung Galaxy Tablets is the following.

"From the front they belong to the family which includes the Apple design; but the Samsung products are very thin, almost insubstantial members of that family with unusual details on the back.

"They do not have the same understated and extreme simplicity which is possessed by the Apple design. They are not as cool. The overall impression produced is different."

Therefore, he decided, Samsung's tablets had not infringed Apple's design.

The judge ordered Apple to post the court's decision on its UK website for six months and to take out adverts in various national newspapers and magazines stating that Samsung's Galaxy Tablet computers had not infringed its copyright.

If Apple ultimately loses this case, it will have to suffer the indignity of publishing the ads and publicly stating that Samsung did not copy its design.

If Samsung loses, it could end up with a permanent ban on sales of its Galaxy tablet in the UK.

However, both sides still have one further option of an appeal to the Supreme Court and with the stakes so high it is likely that whoever loses will appeal.

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China GDP: Economic Growth Slows To 7.4%

Global shares are driven higher by China's economic growth, despite it growing at its slowest pace since the start of 2009.

China's economy grew 7.4%  between July and September from a year earlier, according to official statistics, compared with 7.6% growth in the second quarter.

"This is within expectations, the economy is showing signs of stabilising and that is good news," Hong Kong-based Credit Suisse economist, Dong Tao, said.

"We think that with rebounding property markets, stabilising export orders, resuming consumption, we probably have seen the bottom of the economy.

"The economy can bounce back quickly."

The figures reassured investors, with Asian stock markets rising overnight.

Japan's Nikkei hit a three week high after the release of the data, rising 2%, and Hong Kong's Hang Seng was up 0.6%.

In London, the FTSE rose 0.2% and Germany Dax increased by 0.14% in early trading.

But while these GDP figures would be cause for celebration in recession-hit economies like the UK, it marks the seventh consecutive quarter of slowing growth in China, as its main export markets - Europe and the United States - continue to battle economic problems.

Beijing has attempted to boost growth this year by cutting interest rates twice in quick succession, and slashing banks' capital requirements to encourage lending, but with little success.

It has also shifted its focus to quality growth - rather than quantity - and lowered its target to 7.5% growth in 2012, compared with the 8% target of recent years.

Other data released alongside GDP showed industrial output grew by 9.2% in September compared with the same month last year, and retail sales were up 14.2%.

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Retail Crisis: Chain Store Closures Hit 32 A Day

There has been an acceleration in the number of chain stores closing on the UK's high streets - hitting 32 a day on average amid high rent bills and the recession.

According to data released by professional services firm PwC and the Local Data Company (LDC), an average of 20 shut their doors every 24 hours in the first half of 2012.

It amounted to a net reduction of 953 shops compared to 174 shops in the whole of 2011, the research suggested.

The problem deteriorated between June and August, it was claimed, as shoppers shifted their attention to the Olympics.

Toy shops, clothes shops, jewellers, card and poster shops and furniture stores suffered particularly badly in the first half while discount and convenience stores, coffee shops, bookmakers and charity shops mostly bucked the trend.

The south east was the worst affected region in the first half with 215 net closures, followed by the West Midlands with 160 and the south west with 129.

Towns and cities badly hit included Manchester, Preston, Bristol, Croydon, Sheffield, Derby and Leicester, the report's authors said.

JJB Sports has been among the brands disappearing from town centres

They suggested struggling chains mostly had themselves to blame.

Mike Jervis, PwC insolvency partner and retail specialist, said: "All retailers in distress have too many locations. The insolvencies of Game, Peacocks and Clintons demonstrated this in spades.

"Relatively long leases, with inflexible terms, have been entered into in a growth phase of the economy which is no longer appropriate.

"Where over-expansion has already taken place, retailers need to face that reality and formulate a strategic plan in partnership with landlords, not in confrontation with them."

From a net increase in 2009 of 1.2%, multiple retailers have for the second consecutive year shown a decline in their numbers from -0.25% in 2011 to -1.4% in the first half of 2012.

With consumer budgets remaining under strain ahead of the crucial Christmas trading season, retailers face the stiff challenge of boosting sales but maintaining profits.

Independent retailers have also been battling stiff supermarket and online competition.

Separate studies have identified high closure rates among local stores.

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Benefits: Changes 'To Hit Disabled People'

Up to half a million disabled people and their families could be worse off under the new system of Universal Credit once it is fully implemented, according to a report.

It suggested some people might even be forced out of their homes as a result of the changes.

An inquiry headed by former wheelchair athlete Baroness Tanni Grey-Thompson said several "key" groups would lose out under the Universal Credit, which will start to replace much of the benefits and tax credits system from next year.

The study used research showing that once the changes are fully in place, 100,000 disabled children stand to lose up to £28 a week, 230,000 severely disabled people who do not have another adult to help them could receive between £28 and £58 a week less, and up to 116,000 disabled people who work could be at risk of losing around £40 a week.

The report said the impact of the cuts in support for disabled children could be "extremely severe" for families currently receiving the mid-rate "care component" of the Disability Living Allowance (DLA), a payment made where a child can be severely disabled but does not need care overnight.

Of those families affected, one in 10 expressed fears that they could no longer afford their own home, while two thirds said they would have to cut back on food, and more than a half said it would lead them into debt.

The report was led by Paralympic legend Baroness Tanni Grey-Thompson

In some of the most severe cases, some families said the changes to support for disabled children could result in their children having to be placed in full-time residential care.

The report said 83% of those eligible for the severe disability premium (SDP), which will be abolished under the changes, reported that a reduction in benefit levels would mean they would have to cut back on food and 80% said they would have to cut the amount they spent on heating.

The changes start to come into force from October next year and current benefit claimants who move on to Universal Credit will not see an immediate reduction in their payments.

But they will have their level of benefit frozen, with no increases to take into account rising prices, campaigners said, and they may see their support cut immediately if their household circumstances change.

The report, Holes in the Safety Net: the impact of universal credit on disabled people and their families, had the backing of The Children's Society, Citizens Advice and Disability Rights UK and drew on research from these bodies.

Lady Grey-Thompson, who shares the title of Great Britain's most successful female Paralympian with cyclist Sarah Storey, said the findings of the report did not make "easy reading".

"The clear message is that many households with disabled people are already struggling to keep their heads above water," she said.

"Reducing support for families with disabled children, disabled people who are living alone, families with young carers and disabled people in work, risk driving many over the edge in future."

A spokeswoman for the Department for Work and Pensions (DWP) said savings from abolishing the adult disability premiums and changes in the child rate would be "recycled" into higher payments for more severely disabled people.

She said the report was "highly selective and could result in irresponsible scaremongering", adding that Universal Credit would provide greater incentives for people - including disabled people - to try out work, and would reduce the financial and administrative barriers to work that exist in the current system.

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RBS Quits Treasury's Asset Protection Scheme

RBS has said it will withdraw from a Government insurance scheme set up during the banking crisis to cover its riskiest loans.

The bank said the Treasury had given it permission to opt out of the Asset Protection Scheme (APS) because its payments had reached the minimum £2.5bn.

The programme capped potential losses on almost £300bn of RBS' most toxic assets after the Government spent £45bn bailing it out during the financial crisis of 2008.

The bank, which has not made a claim, said it has reduced these assets by more than 60%.

Leaving the programme will save RBS around £500m a year in future premiums. 

Chief executive Stephen Hester said leaving the APS was a "significant milestone" in the recovery of the bank, which is 82%-owned by the British taxpayer.

"The APS has played a valuable role, buying time for the bank as we implemented change from the worrying days of 2009 to create the much stronger institution it is today," he said.

"RBS's capital, liquidity, and funding positions have been transformed in the past three years, so the time is now right for us to exit this scheme."

The Chancellor hailed the move as a step towards returning the state-owned lender to the private sector.

"The Government's strategy remains to return RBS to the private sector when it is value for the taxpayer to do so," George Osborne said. "Today is a step in that direction."

RBS' exit will give the bank a boost after its £1.65bn deal to sell 316 bank branches to Spain's Santander collapsed last week.

Its share price rose more than 2% on opening on Wednesday.

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Unemployment: UK In Youth Jobs Crisis

By Gerard Tubb, North of England Correspondent

Young people are finding it increasingly difficult to get full time work as employers choose experienced candidates and fill positions quickly.

Researchers who sent out 2,000 applications from fictitious 16 to 24-year-olds found most employers did not reply to them at all.

The Joseph Rowntree Foundation made the applications for more than 650 job vacancies as sales assistants, cleaners, office administrators and kitchen staff.

Each made-up candidate had at least five good GCSEs and relevant work experience.

The study found there were between 24 and 66 unemployed people for every retail vacancy, depending on the supply of jobs in different areas.

Almost eight out of ten of the positions paid under £7 an hour, and less than a quarter were offering full-time work during the day.

Chris Goulden, head of poverty at JRF, said their findings show that for young people today getting a job is a job in itself.

"It's important we have measures that provide more full-time, decent-paying jobs that can ensure work pays," he said.

"A lack of success in the jobs market saps confidence, demotivates and leaves a scar across a generation of young people, while part-time, low-pay work traps people in poverty."

At Darlington College in County Durham students are given help to try to find work, but 17-year-old Joshua Russell found it impossible to get even a part time job at the age of 16.

"I was too young and I didn't have the work experience needed. There's just too many people applying for one job and there just weren't enough available," he explained.

Laura Lennon, aged 19, took a year out before starting her journalism course, but found no-one wanted an A level student.

"I applied for Orange, on the phones, but apparently you need experience answering phones," she said.

Meanwhile a report by the TUC has found that young black men have experienced the sharpest rise in unemployment since the coalition came to power, with more than one in four of all black 16 to 24-year-olds currently out of work.

The reports, published ahead of the new unemployment figures today, followed similar studies in recent days showing a big rise in long-term unemployment among young people.

General Secretary Brendan Barber said: "The UK is in the midst of a youth jobs crisis. Over a million youngsters are out of work and many more are struggling to find the finances needed to further their education.

"Last week the Prime Minister singled out employment as a great success of the government. That's cold comfort to the one in four young black men struggling for work, or the one in six jobless young black women."

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